Which of the Following Is Responsible for Our Immediate, Intuitive

question 411

Multiple Choice

Which of the following is responsible for our immediate, intuitive reactions, known as "thin-slicing"?

• A) right brain
• B) left brain
• C) cognitive unconscious
• D) reflex arc

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Definitions:

Market Portfolio

A theoretical bundle of investments that represents a segment of the overall market, typically used in the Capital Asset Pricing Model.

Sharpe Measure

A risk-adjusted performance metric that evaluates the return of an investment compared to its risk, with a higher Sharpe ratio indicating better risk-adjusted returns.

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole, with a value greater than 1 indicating higher risk and a value less than 1 indicating lower risk.

Treynor Measure

A metric for assessing the returns of an investment portfolio, adjusting for the risk taken as measured by beta.